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Is the Australian property market in a bubble and is due to burst and how should you be investing in today's market? Best selling author Steve McKnight provides us with his insights.

Hey guys, Ryan here from onproperty.com.au, helping you find positive cash flow property. Today, I have the absolute privilege of welcoming on the show Steve McKnight who is a very well-known author around property investing in Australia. He's written multiple books, including one that I highly recommend and have listeners and readers of mine have bought hundreds of copies of this book and that's 0 to 130 Properties in 3.5 Years.

In this book, Steve talks about how he went from 0 to 130 properties with his business partner in just 3.5 years. Following that up, there's 0 to 270 In 7 Years. So Steve has accumulated a lot of properties over time. In fact, it was Steve McKnight's book that got me interested in positive cash flow property in the first place.

I was 16 years old and about to go on a trip to Queensland, to the Great Barrier Reef. I was at the airport and I saw this book in the airport. I ran out, got some money off my dad, purchased the book and then read through that book and got extremely passionate about positive cash flow property. I'm extremely grateful for everything that Steve has done. He, as you find out in the interview, has purchased over 800 properties in his lifetime – in his property investing career.

He has a lot of knowledge and stay until the end where we talk about what anyone can do in no matter what market you're in to ensure that you can move forward and achieve the goals that you've set for yourself. So without further ado, I welcome someone that is very important in my life that has had a massive impact on me and that is Steve McKnight.

Ryan: Hey guys, Ryan here from On Property and I have with me the one and only Steve McKnight, author of 0 to 130 Properties in 3.5 Years and a bunch of other books.

Steve, I wanted to ask you, off the bat, what do you think the landscape of Australia is like at the moment? Because I do receive a lot of your emails and they seem to be a lot of doom and gloom kind of vibe going on there. Do you believe that the Australian market is in a bubble and about to burst or are you more optimistic than that?

Steve: Wow, straight to the hard-hitting questions.

Ryan: We don't have heaps of time, so I figured just get straight into it.

Steve: A mentor of mine once said – a very smart guy who has been investing for 40 or 50 years – said to me, "Steve, when the average person can't buy the average property, then there's a problem." And I think in Australia, there's 2 things that impact a property market. There are factors that stimulate it and there are factors that stifle it.

We have been on one of the biggest bull runs in terms of stimulating factors since the GST was introduced and the first home owners grant came in that anyone can really remember. For instance, we had first home owners grant, we've had low interest rates, the mother of all – the mining booms, strong Australian Dollar – although that's come off the boil.

And what to me is that Australians have a lot more borrowing ability. They've had a lot more incentives to get into houses and they have borrowed like never before to buy like never before, and that's fine. That's where we find ourselves and that's great for those of us who have been in the market and made money in the market.

But then, we look forward and we say, "Well, going ahead, what new stimulus factor might come in?" because the Australian economy is not generating enough tax to run the government. The government needs more tax and if it needs more tax and it needs to tinker with the way negative gearing works or it needs more tax and it needs to tinker with the way that the capital gains tax discount works, then instead of being stimulating factors,